It’s not uncommon for a property owner to disagree with the government over the value of property when the latter wants to exercise eminent domain. The government (the condemnor) is required to provide a property owner with just compensation to take their property for public use.
However, at times, the compensation may not be as just as claimed by the government. Here is how this can happen:
Fair market value
The government must offer property owners the fair market value of their property. Courts interpret this value as “the price that a reasonable buyer would give if he were willing to, but did not have to, purchase, and that a willing seller would take if he were willing to, but did not have to, sell.”
Essentially, what a willing buyer would pay a willing seller in an open and competitive market, when there is no pressure to act.
The suggested amount by the government is not always realistic for property owners. Some people may have issues with their property being assessed for its current use only, instead of its potential (highest and best use), while others might believe the offer won’t be enough to get them a new home and cover moving costs/business losses, and so forth.
What can you do?
Regardless of your reason for believing the government offer is not just, it’s vital to negotiate. You don’t need to accept the initial offer. Negotiate to get fair compensation. If negotiation fails to yield the expected results, you can use alternative dispute resolution (ADR), including mediation, judicial settlement conferences, arbitration and litigation.
You have the right to receive just compensation in eminent domain. Learn more about negotiation and ADR to get a fair amount for your property.